JGB futures closed 41 ticks higher on the......>

JGBS: JGB futures closed 41 ticks higher on the day, as bulls managed to force a

break through the 61.8% retracement of the Sep-Dec 2019 decline. JGB cash trade

saw the long end of the curve catch up to the early outperformance in the belly,

while futures marched higher, with 30-Year swap tightening evident come the

close.

- FinMin Aso noted that he doesn't see the need to compile an extra budget at

present, with similar commentary from PM Abe. Both noted that they would open

the taps if required. Elsewhere, one of the PM's closest advisors, Honda,

pointed to the need for further fiscal spending in a BBG interview. Elsewhere,

RTRS ran comments from the Health Minister, who has said that he will not rule

out schools being closed for more than 1-2 weeks. Local data saw stronger than

expected industrial production and retail sales readings, a softer labour market

report, and slowing across the Tokyo CPI metrics (which also missed exp.).

- Finally, there was a solid round of 2-Year supply, especially given the recent

outright richening. The auction saw no tail, while the cover ratio edged higher

and low price topped dealer estimates.